BA1 - Fundamentals of Business Economics Exam Questions PDF download

QUESTION: 61 Exam Topic: 1, Exam Pool A

Which one of the following policies to correct a balance of payments current account deficit is an example of an expenditure reducing policy?

Depreciation of the currency.
The imposition of an import tax.
Increased income tax.
The use of import quotas.

Answer(s): C

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QUESTION: 62 Exam Topic: 1, Exam Pool A

Which of the following is an invisible import for a country?

Expenditure in its shops by foreign diplomats based in the country
The country's contribution to foreign aid
A foreign company signing a contract guaranteeing to invest in a new factory in the country
Repayment of an IMF loan by the country's government

Answer(s): B

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QUESTION: 63 Exam Topic: 1, Exam Pool A

It is necessary to include a balancing item in the balance of payments accounts in order to

Balance the current and capital accounts
Ensure that balance of payments equilibrium is achieved
Record accurately changes in the balance of official reserves
Compensate for mistakes made when recording current and capital flows

Answer(s): D

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QUESTION: 64 Exam Topic: 1, Exam Pool A

In a customs union member countries

Meet to agree tariff increases affecting internal trade between themselves
Trade freely with each other and impose their own national restrictions on trade with the rest of the world
Trade freely with each other and accept a common external tariff for trade with the rest of the world
Replace national currencies with a common currency such as the Euro

Answer(s): C

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QUESTION: 65 Exam Topic: 1, Exam Pool A

Country Y and country Z both impose tariffs on goods imported from each other.
Which of the following would likely to be a long-term effect of the imposition of such tariffs?

None. Tariffs affect exports and imports rather than real income
Real income would be lower in Z but higher in Y
Real income would be lower in Y but higher in Z
Real income would grow at a slower rate in both countries compared to a situation in which there are no tariffs

Answer(s): D

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CIMA BA1 - Fundamentals of Business Economics CIMAPRA17-BA1-1 Dumps in PDF

Free CIMA CIMAPRA17-BA1-1 Real Questions (page: 13)

QUESTION: 61 Exam Topic: 1, Exam Pool A

QUESTION: 62 Exam Topic: 1, Exam Pool A

QUESTION: 63 Exam Topic: 1, Exam Pool A

QUESTION: 64 Exam Topic: 1, Exam Pool A

QUESTION: 65 Exam Topic: 1, Exam Pool A